Program 1: Do I Have to Pay Tax on This? Assessable Income

Fundamental to the role of a tax accountant is determining what is included in assessable income, which is not always as straightforward as you may think. This session is designed to help develop your understanding of the assessable income concept, including:

• The difference between ordinary income and statutory income
• The distinction between income and capital
• Distinguishing between income from a hobby and a business
• Explanation of the terms:
  • exempt income
  • non assessable, non-exempt income
• Trading stock and the effect on income
• The mutuality principle
• When to use the cash or accruals method to account for income
• Income and the cash economy

Program 2: Is the Income Mainly from your own Personal Effort and Skills? Personal Services Income

Income regarded as personal services income (PSI) can affect how tax is paid on that income as well as the deductions that can be claimed. This session introduces you to the concepts of PSI and income from a “personal service business” (PSB), as well as why the distinction matters, including:

• Explaining what is PSI and PSB income
• The results test
• How to determine if you have passed the 80% test
• Is having a business website sufficient to pass the condition of “making offers to the public”?
• What are the implications if the PSI rules apply?
• What are the tax return requirements for the individual if the PSI rules apply?
• How the PSI rules can affect partnership, company and trust income tax returns
• Worked examples from TR 2021/D2